EUR/AUD: beware of resistance (June 18)
By Felipe Erazo
The EUR/AUD is facing resistance at the 38.2 Fibo level (1.4508), so this pair is trying to make a breakout at that level, as the bullish momentum is still alive in the EUR/AUD. However, as we see in the H4 chart, this pair has been in a prolonged bearish trend that has allowed it to touch the low of 1.4358.
If EUR/AUD manages to make a breakout at the Fibo level, the next goal in this pair would be the resistance level of 1.4554 (50.0 Fibo level). However, keep in mind that the CCI indicator is in the overbought zone, so it is very likely that this pair to resume the overall bearish trend in the coming days. Be cautious with your current short positions in this pair in the long term, because the EURAUD could change its trend soon.
Trading recommendation: If you are currently buying this pair, we recommend to close the positions, because the EUR/AUD could find resistance at that 38.2 Fibo level. By the other side, place sell orders at the 1.4554 level, with take profit at 23.6 Fibo level (1.4451).